Individual Long-Term Care Insurance. Custom Care II Enhanced North Carolina Sample Policy

John Hancock Life Insurance Company (U.S.A.), Boston, MA 02117 Individual Long-Term Care Insurance Custom Care II Enhanced North Carolina Sample Policy If you have any questions, please call LTC Support Services toll-free at 1-800-377-7311 State: North Carolina Rev. 1/10

John Hancock Life Insurance Company (U.S.A.) Boston, Massachusetts We at John Hancock are pleased to provide You with this Policy and the important benefits that it provides. THIRTY DAY FREE LOOK. If You are not completely satisfied with this Policy for any reason, You may return it within 30 days from the date it was delivered to You. To return the Policy, mail or deliver the Policy to Our LTC Administrative Office or to your sales representative that sold you the policy. We will then refund any premium paid, and the Policy will be treated as if it had never been issued. PLEASE READ THIS POLICY CAREFULLY. This Policy is a legal contract between You and Us. We will provide the benefits stated in this Policy subject to the provisions, exceptions and limitations stated on this and the following pages. We have issued this Policy in consideration of the application and payment of the First Premium on or before the date this Policy is delivered to You. CAUTION. The issuance of this long-term care insurance Policy is based upon Your responses to the questions on Your application. A copy of Your application is attached. If Your answers are not complete, true, and correctly recorded, We have the right to deny benefits or rescind Your Policy subject to the Time Limit on Certain Defenses provision. The best time to clear up any questions is now, before a claim arises! To contact Us at Our LTC Administrative Office, write to: John Hancock Life Insurance Company (U.S.A.), 333 West Everett Street, P.O. Box 2986, Milwaukee, WI 53203 or call Us at 1-800-377-7311. NOTICE TO BUYER. This Policy may not cover all of the costs associated with long-term care You incur during the period of coverage. You are advised to review all Policy limitations carefully. THIS IS NOT A MEDICARE SUPPLEMENT POLICY. If you are eligible for Medicare, review the Guide to Health Insurance for People with Medicare, which is available from John Hancock. GUARANTEED RENEWABLE FOR LIFE OR UNTIL THE POLICY LIMIT IS REACHED LIMITED RIGHT TO INCREASE PREMIUMS. As long as You pay the required premium, You have the right to continue this Policy for as long as You live or until the Policy Limit is reached. We cannot cancel the Policy unless You do not make the required premium payments on a timely basis. To continue this Policy, You must make sure that You pay the premiums when they are due. We reserve the right to increase Your premium as of any premium due date; however, any changes in premium rates must apply to all similar policies issued in Your state on this Policy form. This means We cannot single You out for an increase because of any change in Your age or health. The premium will not be increased more often than once in any 12 month period. We will send You a notice of the new premium at least 45 days before it becomes effective. In addition, We cannot change the provisions of this Policy without Your consent. FEDERAL INCOME TAX TREATMENT OF THIS POLICY. Long-term care insurance was granted favorable federal income tax treatment in the Health Insurance Portability and Accountability Act of 1996. Policies meeting certain criteria outlined in this Act are eligible for this treatment. To the best of Our knowledge, We have designed this Policy to meet the requirements of this law. This Policy is intended to be a qualified long-term care contract under Section 7702B(b) of the Internal Revenue Code. If, in the future, it is determined that this Policy does not meet these requirements, We will make every reasonable effort to amend the Policy if We are required to do so in order to gain such favorable federal income tax treatment. We will offer You an opportunity to receive these amendments. Signed for the Company at Boston, Massachusetts: Secretary President LONG-TERM CARE INSURANCE POLICY The benefit schedule and the amount of Your First Premium are shown in the Policy Schedule. LTC-03 NC 1/08 1 SAMPLE POLICY

TABLE OF CONTENTS SCHEDULE OF BENEFITS...3 PART 1 WORDS AND PHRASES...5 PART 2 YOUR LONG-TERM CARE BENEFITS...11 Eligibility for the Payment of Benefits Conditions Limitations Charges Not Covered Long-Term Care Benefit Stay At Home Benefit Respite Care Benefit Care Advisory Services Benefit Waiver of Premium Benefit Extension of Benefits International Coverage Benefit Return of Premium Benefit upon Death PART 3 EXCEPTIONS...17 Exceptions Non-Duplication of Benefits PART 4 CLAIMS...18 Notice of Claim Claim Forms and Proof of Loss Our Claims Evaluation Process Time of Payment of Claims Payment of Claims Misstatement of Age Appeals Legal Action PART 5 PREMIUMS AND REINSTATEMENT...22 Payment of Premiums Grace Period Reinstatement Added Protection Against Lapse Refund of Unearned Premiums at Death PART 6 GENERAL PROVISIONS...24 Entire Contract and Changes Time Limit on Certain Defenses/Misrepresentation Conformity with State Laws Right to Recovery Policy Termination LTC-03 NC 1/08 2 SAMPLE POLICY

Insured: Jane Hancock] Effective Date of Coverage: [January 1, 2003] Policy Number: [H 9000 000] First [Annual] Premium: [***] $[XXXXX.XX] Policy Form: LTC-03 NC 1/08 Policy Title: Long-Term Care Insurance Policy POLICY SCHEDULE This Policy Schedule provides You with specific information about the benefits You selected and how much We will pay. Coverage Limits¹: Elimination Period: Benefit Period: Policy Limit*: Long-Term Care Benefit Amount*: [XXX] Dates of Service [XX] Years $ [XXXXX] $ [XXX] per month/per day Respite Care Benefit Amount*: $ [XXX] per day Care Advisory Services Benefit Amount*: $ [XXX] per calendar year International Coverage Benefit Amount*: $ [XXX] per month/per day [Double Coverage Accident Benefit Amount*: $ [XXX] per month/per day] Stay At Home Lifetime Benefit Amount*: $ [XXX] (The Stay at Home Benefit includes benefits for home modifications, emergency medical response systems, durable medical equipment, caregiver training, home safety check and provider care check.) ¹Please refer to How Your Long Term Care Benefits Are Paid for complete details *Subject to increases due to inflation coverage, if any. [Compound Inflation Coverage] Base Policy Premium: Optional Benefits Selected and Included in this Policy: [SharedCare Benefit [Survivorship & Waiver of Premium Benefit [Waiver of the Home Care Elimination Period [Additional Cash Benefit [Enhanced Return of Premium Benefit upon Death [Restoration of Benefits [Nonforfeiture Benefit [FamilyCare Benefit Total Policy Annual Premium including Optional Benefits: $ [XXX] Annual Premium $ [XXX] Annual Premium] $ [XXX] Annual Premium] $ [XXX] Annual Premium] $ [XXX] Annual Premium] $ [XXX] Annual Premium] $ [XXX] Annual Premium] $ [XXX] Annual Premium] Included in premiums shown] $ [XXX] Annual Premium Total Premium Payment Options (includes all optional benefits): Annual Semi-Annual Quarterly Monthly First Year Premium: $[XXX.XX] $[XXX.XX] $[XXX.XX] $[XXX.XX] Total Yearly Cost for First Year Premium: $[XXX.XX] $[XXX.XX] $[XXX.XX] $[XXX.XX] Early notification to Our Claims Department will facilitate a timely review of Your claim. Please let Us know immediately or in advance, whenever possible, when You need care or services covered by this Policy. Please call Us at 1-800-377-7311. [This Schedule replaces any prior Schedule as of MO/DD/YR.] LTC-03 NC 1/08 3 SAMPLE POLICY

[POLICY SCHEDULE - (continued) *** Important Notice. You have selected the Ten-Year Premium Payment Option. This means that Your Policy is fully paid-up and no further premiums will be due at the end of Your tenth Policy year. Prior to the end of Your tenth Policy year, You must make sure that You pay the premiums when they are due to continue this Policy. However, in the event that We find that the premium rates for this Policy form are inadequate prior to the end of the tenth Policy year, We reserve the right to increase Your premium as of the next premium due date. The premium will not be increased more often than once in any 12 month period. We will send You a notice of the new premium at least 45 days before it becomes effective. ] OR [*** Important Notice. You have selected the Paid-Up at Age 65 Payment Option. This means that Your Policy will be paid-up and no further premiums will be due after the Policy anniversary following Your 65 th birthday. Prior to this, You must make sure that You pay the premiums when they are due to continue this Policy. However, in the event that We find that the premium rates for this Policy form are inadequate during the premium paying period, We reserve the right to increase Your premium as of the next premium due date. The premium will not be increased more often than once in any 12 month period. We will send You a notice of the new premium at least 45 days before it becomes effective.] [This page was intentionally left blank.] LTC-03 NC 1/08 4 SAMPLE POLICY

PART 1 - WORDS AND PHRASES This part explains the special meaning given to certain words or phrases as they are used in this Policy. Other terms may be defined in the part in which they are most frequently used. Defined terms are presented with capital letters to help You easily identify them. We urge You to pay special attention to facility and care provider definitions. The terms used in this Policy are Our way of referencing the collection of information contained in the definition. Activities of Daily Living means the following activities: Bathing which means washing Yourself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower. Continence which means the ability to maintain control of bowel and bladder functions; or when unable to maintain control of bowel or bladder functions, the ability to perform associated personal hygiene (including caring for catheter or colostomy bag). Dressing which means putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs. Eating which means feeding Yourself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously. Eating does not include preparing a meal. Toileting which means getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene. Transferring which means moving into or out of a bed, chair or wheelchair. Transferring does not include the task of getting into or out of the tub or shower. Adult Day Care means social and health-related services provided during the day in a community or group setting to six (6) or more persons. The purpose of the program is to support frail or impaired elderly, or other disabled adults who can benefit from care in a group setting outside the home. Adult Day Care Center means a place that is licensed to provide Adult Day Care by the jurisdiction in which the services are provided. If licensing is not required, Adult Day Care Center means a place that provides Adult Day Care, has enough full-time staff to maintain no more than an 8 to 1 client-staff ratio, and has established procedures for obtaining appropriate aid in the event of a medical emergency. An Adult Day Care Center is a place that provides Adult Day Care for only part of a day. Assisted Living Facility means a facility which: is licensed to provide Custodial Care according to the laws of the jurisdiction in which it is located; or if licensing is not required, meets all of the following -- has a 24-hour on-site staff to provide Custodial Care; provides Custodial Care services for a charge, including room and board; has established procedures for obtaining appropriate aid in the event of a medical emergency; provides 3 meals a day and can accommodate special dietary needs; it provides, at a minimum, assistance with Bathing and Dressing; and provides Custodial Care services to 10 or more persons. LTC-03 NC 1/08 5 SAMPLE POLICY

Examples of such facilities may include Alzheimer facilities or Assisted Living Facilities that are either free standing facilities or part of a life-care community. They may also be met by some personal care and adult congregate care facilities. An Assisted Living Facility does not mean: a hospital or clinic; a rest home (a home for the aged or a retirement home) which does not, as its primary function, provide Custodial Care; Your Home; or a facility for the treatment of alcoholism, drug addiction, or mental illness. Care Advisory Services means assessment and care planning by a Home Health Agency, a Care Management Organization or an Independent Care Manager. Care Advisory Services do not determine eligibility for benefits under this Policy. Care Advisory Services include: assessing Your need for long-term care services; developing a recommendation for long-term care services that is consistent with Your care needs based upon their assessment; coordinating delivery of long-term care and services; and monitoring the long-term care and services delivered. Care Management Organization means an organization which: is licensed, if required, and operated to provide Care Advisory Services according to the laws, if any, of the jurisdiction in which it is located; has a full-time administrator; maintains records of services provided to each client; and has a staff including at least one full-time registered nurse, one full-time licensed social worker, one full-time individual who holds the designation of a Care Manager from the National Association of Professional Care Managers, or a full-time person with a Masters in Gerontology from an accredited school of Gerontology. A Chronically Ill Individual means that You: are unable to perform without Substantial Assistance from another individual at least two Activities of Daily Living due to the loss of functional capacity for a period expected to last 90 days; or require Substantial Supervision to protect Yourself from threats to health and safety due to the presence of a Cognitive Impairment. Cognitive Impairment means a deficiency in a person's short-term or long-term memory; orientation as to person, place, or time; deductive or abstract reasoning; or judgment as it relates to safety awareness. Your Cognitive Impairment must be established and reliably measured by clinical evidence and standardized tests. The need for Substantial Supervision due to the presence of Cognitive Impairment must be established by such clinical evidence and standardized tests. Custodial Care means non-skilled long-term care included in Your Plan of Care and approved by a Licensed Health Care Practitioner: which is necessary due to Your Cognitive Impairment; or to assist You in the Activities of Daily Living. LTC-03 NC 1/08 6 SAMPLE POLICY

Date of Service means a day that You are eligible for benefits under this Policy (including Dates of Service during the Elimination Period) on which You: are a resident in a Nursing Home or an Assisted Living Facility; receive Home Health Care or Hospice Care; or receive services covered under this Policy that are Medicare eligible (for which benefits are not payable under this Policy). Elimination Period (waiting period) means the number of Dates of Service that would otherwise be covered by this Policy, for which We will not pay benefits. The Elimination Period is shown in the Policy Schedule. Only one complete Elimination Period needs to be satisfied while Your Policy is in force. The Elimination Period starts on the first Date of Service. No Date of Service may be counted as more than one day towards the satisfaction of Your Elimination Period. The Dates of Service used to satisfy Your Elimination Period do not need to be consecutive and may be accumulated under separate claims. We will not pay benefits for charges during the Elimination Period, except for Care Advisory Services, Respite Care and the Stay at Home Benefit. Days that You only receive Respite Care will not count toward the satisfaction of Your Elimination Period. If You receive Home Health Care for one or more days in a Calendar Week, We will apply seven days toward the satisfaction of Your Elimination Period, except if Respite Care is being received during the Calendar Week. If Respite Care is received during a Calendar Week, only the actual Dates of Service other than Respite Care will be applied toward satisfaction of Your Elimination Period. Please note that there will be no credit of days which occur before Your first Date of Service. (Calendar Week means the seven consecutive day period that begins on Sunday at 12:01 a.m.) Home means Your primary residence, including Your independent living quarters in a continuing care retirement community or similar entity. It does not include a Nursing Home, an Assisted Living Facility, an Alzheimer s facility, an Adult Day Care Center, a rest home, a hospital or rehabilitation facility/hospital, or a facility for the treatment of alcoholism, drug addiction or mental illness. Home Health Care means medical and non-medical professional or personal care services provided in Your Home to assist You in the Activities of Daily Living or to give supervision needed because of Your Cognitive Impairment. These services must be provided by a Home Health Care Provider. Home Health Care also includes Incidental Homemaker Services. Incidental Homemaker Services means services incidental to care with the Activities of Daily Living or because of a Cognitive Impairment which are included in a Plan of Care and which provide one of more of the following nonmedical support services necessary for You to remain in Your home: meal preparation; laundry; light housekeeping; supervising self-administration of medication; and shopping for medication, medical supplies or food. Incidental Homemaker Services must be provided during the same visit and by the same individual providing care with the Activities of Daily Living or because of a Cognitive Impairment. LTC-03 NC 1/08 7 SAMPLE POLICY

Home Health Care Provider means either a Home Health Agency or an Independent Home Health Care Provider that provides Home Health Care. A Home Health Care Provider cannot be a member of Your Immediate Family except as provided in the "Exceptions" section of the Policy or an individual who normally resides in Your Home. A Home Health Agency must meet one of the following requirements: it is licensed as a Home Health Agency by the jurisdiction in which the Home Health Care is provided; or it possesses one of the following certifications in the jurisdiction in which the Home Health Care is provided - Medicare Certification; Joint Commission of Accreditation of Health Care Organizations (JCAHO) Certification; or Community Health Accreditation Program (CHAP) Certification; or it provides Home Health Care through 2 or more employees of an organization that is in the business of providing Home Health Care according to the laws of the jurisdiction in which it is located. An Independent Home Health Care Provider means a care provider not employed by a Home Health Agency who meets one of the following requirements. He or she: is a duly licensed registered nurse, licensed vocational nurse, licensed practical nurse, registered physical therapist, registered occupational therapist, registered speech therapist, registered respiratory therapist, licensed social worker, or registered dietitian; or must be currently qualified as a certified home health aide or certified nurse aide; or must be currently included in a government sponsored nurse aide registry. In the case of a home health aide or nurse aide who does not meet one of the standards set forth above, such aide must present written proof of completion of an established training course which must include training in safely assisting persons with the Activities of Daily Living. Hospice means a facility, unit of a facility, public or private agency or unit of a public or private agency that meets Federal certification requirements as a Hospice or is licensed, certified or registered to provide Hospice Care under the law of the jurisdiction in which it is located. Hospice Care means a program for meeting Your care needs if You are Terminally Ill. Terminally Ill means there is no reasonable prospect of cure and You have a life expectancy, as estimated by a Physician, of 12 months or less. Hospice Care must be provided by an organization that is licensed to provide such care according to the laws of the jurisdiction in which it is located. Hospice Care is limited to those services received by You. You must satisfy Your Elimination Period before receiving benefits for Hospice Services. Hospice Care may be provided in Your Home, a Nursing Home, an Assisted Living Facility, and Adult Day Care Center or in a Hospice Care facility. Immediate Family means Your spouse or Partner, or the following relatives of You or Your spouse or Partner: parents, stepparents, grandparents, siblings, children, stepchildren, grandchildren, and their respective spouses. For purposes of this definition, Partner means the unmarried person who is not related to You with whom You have lived in a committed relationship for at least 5-years prior to the date You applied for this Policy. This person is the individual You named in Your application or other subsequent document as Your Partner in order to obtain the Partner premium discount under this Policy. LTC-03 NC 1/08 8 SAMPLE POLICY

Independent Care Manager means: a registered nurse; a licensed social worker; an individual who holds the designation of a Care Manager from the National Association of Professional Care Managers; or a person with a Masters degree in Gerontology (or equivalent) from an accredited school of Gerontology. Licensed Health Care Practitioner means a Physician, a registered nurse (R.N.), a licensed social worker, or any other individual who meets the requirements as may be prescribed by the Secretary of the Treasury. You may select any Licensed Health Care Practitioner of Your choosing. However, a Licensed Health Practitioner may not be a member of Your Immediate Family. Long-Term Care Services means the following covered care or services: confinement in a Nursing Home or Assisted Living Facility for room, board and care services (such care services being Nursing Care, Custodial Care and Hospice Care); Home Health Care, Hospice Care, Respite Care; or attendance at an Adult Day Care Center providing Adult Day Care. Medicaid means the reimbursement system under Title XIX of the Federal Social Security Act, as amended. Medicare means the reimbursement system under Title XVIII of the Federal Social Security Act, as amended. Nursing Care means skilled or intermediate care provided by one or more of the following health care professionals: registered nurse, licensed vocational nurse, licensed practical nurse, physical therapist, occupational therapist, speech therapist, respiratory therapist, medical social worker or registered dietitian. Nursing Home means a facility which: is licensed and operated to provide Nursing Care for a charge (including room and board), according to the laws of the jurisdiction in which it is located; and has services performed by or under the continual, direct and immediate supervision of a registered nurse, licensed practical nurse or licensed vocational nurse, on-site twenty-four (24) hours per day. A Nursing Home may be a freestanding facility or it may be a distinct part of a facility, including a ward or a wing of a hospital or other facility. Nursing Home does not mean: a hospital or clinic; a swing-bed in a hospital; a rest home (a home for the aged or a retirement home) which does not, as its primary function, provide Custodial Care; Your Home; or a facility for the treatment of alcoholism, drug addiction, or mental illness. LTC-03 NC 1/08 9 SAMPLE POLICY

Physician means any person licensed as a Medical Doctor (M.D.) or Doctor of Osteopathy (D.O.) practicing within the scope of his or her license issued by the jurisdiction in which the services are rendered. Plan of Care means a written plan for long-term care services designed especially for You. This Plan of Care must specify the type, cost, frequency and providers of all the services You require; and be in accordance with accepted medical and nursing standards of practice. A Licensed Health Care Practitioner must approve Your Plan of Care. Your Plan of Care must be updated as Your condition and needs change. We must be provided with a revised Plan of Care each time it is updated. We reserve the right to request periodic updates regarding Your Plan of Care, but not more frequently than once every 30 days. No more than one Plan of Care may be in effect at a time. Policy Limit means the total amount, as shown on the Policy Schedule, from which You will be paid benefits for all covered care and services. All benefits, except for the Stay at Home Benefit and Care Advisory Services Benefit, will be deducted from the Policy Limit. We will not pay benefits, except for the Stay at Home Benefit and Care Advisory Services Benefit, in excess of the Policy Limit as shown in the Policy Schedule. Respite Care is the short-term care designed to provide temporary relief to Your primary uncompensated caregiver from his or her caregiving duties and provided in: a Nursing Home; an Assisted Living Facility; an Adult Day Care Center; Your Home; or a community-based program. Respite Care includes: confinement in a Nursing Home or Assisted Living Facility; Home Health Care; Adult Day Care; and Hospice Services. Substantial Assistance means You need hands-on or standby assistance while You are performing an Activity of Daily Living. Hands-on assistance means the physical assistance of another person without which You would be unable to perform the Activity of Daily Living. Standby assistance means the presence of another person within arm s reach of You that is necessary to prevent, by physical intervention, injury to You while You are performing the Activity of Daily Living. Substantial Supervision means You need continual supervision due to Your Cognitive Impairment (which may include cueing by verbal prompting, gestures, or other demonstration) by another person that is necessary to protect You from threats to Your health or safety (such as may result from wandering). We, Our and Us means the John Hancock Life Insurance Company (U.S.A.). You, Your and Yourself means the person listed in the Policy Schedule as the Insured. LTC-03 NC 1/08 10 SAMPLE POLICY

PART 2 - YOUR LONG-TERM CARE BENEFITS This part describes when You are eligible for benefits, the benefits available under this Policy and the conditions under which benefits will be paid. Eligibility for the Payment of Benefits ELIGIBILITY FOR PAYMENT OF BENEFITS You are eligible for benefits under this Policy if You are a Chronically Ill Individual. A Chronically Ill Individual means that You: are unable to perform without Substantial Assistance from another individual at least two Activities of Daily Living due to the loss of functional capacity for a period expected to last 90 days; or require Substantial Supervision to protect Yourself from threats to health and safety due to the presence of a Cognitive Impairment. This Policy provides coverage for Long-Term Care Services which are needed due to mental illness, Alzheimer s Disease and forms of senility and irreversible dementia that result in a Cognitive Impairment subject to the provisions, exclusions and limitations found in this Policy. Conditions LIMITATIONS ON OR CONDITIONS FOR ELIGIBILITY FOR BENEFITS To receive benefits under this Policy: Your Elimination Period must have been satisfied unless otherwise provided in this Policy; You must receive covered care or services while this Policy is in effect; You must receive care or services that are consistent with Your care needs and are covered under this Policy, specified in a Plan of Care and are in accordance with accepted medical and nursing standards of practice; and You must submit to Us a current Plan of Care and written Proof of Loss both of which are acceptable to Us. Because this Policy is intended to be tax-qualified under federal law, You must ALSO provide Us with one of the following written certifications: A Licensed Health Care Practitioner must certify that You are unable to perform without Substantial Assistance from another individual at least two Activities of Daily Living due to the loss of functional capacity for a period expected to last at least 90 days. A Licensed Health Care Practitioner must certify that You require Substantial Supervision to protect Yourself from threats to health and safety due to the presence of a Cognitive Impairment. This written certification must be renewed and submitted to Us every 12 months. Limitations We will not pay benefits, except for the Stay at Home Benefit and Care Advisory Services Benefit, in excess of the Policy Limit as shown in the Policy Schedule. We will not pay benefits for charges during the Elimination Period, except as described in the Respite Care Benefit, Care Advisory Services Benefit and the Stay at Home Benefit. LTC-03 NC 1/08 11 SAMPLE POLICY

Charges Not Covered We will not pay for any of the following: Physician s charges; hospital and laboratory charges; prescription or non-prescription medication; medical supplies; durable medical equipment (except as described in the Stay at Home Benefit); transportation; items and services furnished at Your request for beautification, comfort, convenience or entertainment; and charges for care or services which are not included in and/or are inconsistent with Your Plan of Care. Long-Term Care Benefit HOW YOUR LONG-TERM CARE BENEFITS ARE PAID We will pay the actual charges incurred by You for Long-Term Care Services up to the Long-Term Care Benefit Amount as shown in the Policy Schedule if You are eligible for the payment of benefits under this Policy. Long-Term Care Services mean the following covered care or services: Your confinement in a Nursing Home or Assisted Living Facility for Your room, board and care services (such care services being Nursing Care, Custodial Care and Hospice Care); Home Health Care, Hospice Care, Respite Care; or attendance at an Adult Day Care Center providing Adult Day Care. In addition, if Your stay in a Nursing Home or Assisted Living Facility is interrupted for any reason and a benefit is payable under this Policy, We will continue to pay the actual charges for up to 60-days in any calendar year in order to reserve Your bed during Your absence. Any unused portion of Your Long-Term Care Benefit Amount will remain in the Policy Limit. Any benefit paid under this provision will reduce Your Policy Limit. Stay at Home Benefit The Stay at Home Benefit can be used to pay for a variety of Your long-term care expenses while You are living in Your Home that are not otherwise covered under the Policy. Stay at Home Services include: 1. Home Modifications; 2. Emergency Medical Response Systems; 3. Durable Medical Equipment; 4. Caregiver Training; 5. Home Safety Check; and 6. Provider Care Check. We will pay actual charges incurred for Stay at Home Services up to the Stay At Home Lifetime Benefit Amount so long as all of the following conditions are met: the care or services are consistent with Your care needs and are provided pursuant to a Plan of Care approved by a Licensed Health Care Practitioner; and You are eligible for the payment of benefits under this Policy. LTC-03 NC 1/08 12 SAMPLE POLICY

The Stay At Home Lifetime Benefit Amount is shown on the Policy Schedule. Any unused portion of this benefit amount may be used for future Stay at Home Services. Benefits paid under the Stay at Home Benefit will not reduce the Policy Limit. You do not have to satisfy the Elimination Period to receive benefits under the Stay at Home Benefit. The days for which You receive only the Stay at Home Benefit do not count toward the Elimination Period. You may receive benefits under the Long- Term Care Benefit and/or Care Advisory Services Benefit while receiving benefits under the Stay at Home Benefit. The Stay at Home Benefit will no longer be available to You on the earliest of the following dates: the date You terminate Your Policy; the date You exhaust Your Policy Limit; the date You exhaust Your Stay at Home Lifetime Benefit Amount; or the date Your Policy goes on nonforfeiture status. Stay at Home Services Defined: Home Modifications mean modifications to Your Home that are primarily being made to improve Your ability to perform the Activities of Daily Living and allow You to live safely and independently in Your Home. Examples of Home Modifications include: installation of ramps for wheelchair access; installation of shower bars; widening doorways; and other similar accessibility modifications. Home Modification does not include: hot tubs, swimming pools, home repair or maintenance; or other modifications that may, other than incidentally, increase the value of Your Home. Emergency Medical Response System means a communication system that is: installed in Your Home; and used to call for assistance in the event of a medical emergency. It does not mean a home security system. Durable Medical Equipment means equipment that You rent or purchase which is designed to be used in Your Home to assist You in performing the Activities of Daily Living. Examples of Durable Medical Equipment include: walkers; hospital-style beds; crutches; and wheelchairs. Durable Medical Equipment does not include: prescription drugs; athletic equipment; equipment placed in Your body; or items commonly found in a household. Caregiver Training means a training program which provides instruction to uncompensated informal caregivers in basic caregiving techniques which will allow You to remain in Your Home. Such training is to help Your caregiver tend to Your specific long-term care needs. The informal caregiver may be a relative or someone chosen by You, but in no event will We pay for training provided to someone who will be paid to care for You. Home Safety Check means a written evaluation of Your Home, by a Home Health Agency or other qualified professional agency or individual acceptable to Us, in order to evaluate the safety of Your Home environment. Examples of items in the Home that may be evaluated include: cabinet and appliance height; furniture arrangement; doorway and hallway width; and the need for safety bars in the bathroom. Provider Care Check means an independent written evaluation of Your care providers and the care You are receiving, in order to confirm consistent delivery of care being provided to You as defined in Your Plan of Care. This evaluation must be performed by a Home Health Agency or other qualified professional agency or individual acceptable to Us. LTC-03 NC 1/08 13 SAMPLE POLICY

Alternate Services Benefit The Alternate Services Benefit may cover long-term care services not expressly covered by the Policy so long as all the requirements of this provision are met. We will consider paying actual charges for alternate services under the Alternate Services Benefit only if: We determine You are eligible for benefits under this Policy, and the alternate services are: an alternative to Long-Term Care Services which You would otherwise require, that is less expensive than the amount We would otherwise pay for such Long-Term Care Services; and medical or non-medical professional or personal care services to assist You in the Activities of Daily Living or to provide supervision needed because of Your Cognitive Impairment; and necessary for You based upon Your medical status, current and future care plans, and suitability and effectiveness of care; and included in Your Plan of Care; and agreed upon by You and Us. If We determine that You are eligible for the Alternate Services Benefit, the alternate services will be described in an alternate services agreement that is mutually agreed to in writing by You and Us. Such agreement will specify the maximum amount that We will reimburse for such services. We will only pay for alternate services received on or after the effective date of the alternate services agreement. In addition, Your Policy must be in effect when the charges for alternate services are incurred. Any benefits paid under this provision will reduce Your Policy Limit. Days for which You receive alternate services on or after the effective date of the alternate services agreement will count toward the Elimination Period. We will not pay this benefit until Your Elimination Period has been satisfied. The Alternate Services Benefit may not be used to pay for any charges for services described in the Charges Not Covered or Exceptions provisions of the Policy. In addition, the Alternate Services Benefit may not be used to supplement existing coverage limits under this Policy. You may choose to discontinue the use of Alternate Services Benefits at any time. Payment of the Alternate Services Benefit does not waive any of Your or Our rights under the Policy. Respite Care Benefit During Your Elimination Period, We will pay benefits for Respite Care if: Respite Care is received while this Policy is in effect; a Licensed Health Care Practitioner verifies in writing that You have met the eligibility requirements of this Policy; We are provided with written proof that Your uncompensated caregiver is taking a temporary leave of absence; and You are eligible for the payment of benefits under this Policy. During Your Elimination Period, We will pay the actual charges incurred for Respite Care up to the Respite Care Benefit Amount per day for up to 21-days in any calendar year. The Respite Care Benefit Amount available during the Elimination Period is shown in the Policy Schedule. This means You do not need to satisfy Your Elimination Period before receiving benefits for Respite Care. Days that You receive Respite Care will not count toward the satisfaction of Your Elimination Period. Benefits paid for Respite Care during the Elimination Period, will reduce Your Policy Limit. LTC-03 NC 1/08 14 SAMPLE POLICY

After Your Elimination Period has been satisfied, We will pay the actual charges incurred for Respite Care up to the Long-Term Care Benefit Amount as shown in the Policy Schedule. In addition, benefits paid for Respite Care after Your Elimination Period has been satisfied will reduce the Policy Limit. Care Advisory Services Benefit We will pay the Care Advisory Services Benefit if: You are receiving Care Advisory Services; the provider of Care Advisory Services submits a written record to Us, detailing their recommendations; the provider of Care Advisory Services submits their written assessment and an itemized bill; and You are eligible for the payment of benefits under this Policy. We will pay the actual charges for Care Advisory Services up to the Care Advisory Services Benefit Amount as shown in the Policy Schedule. You do not have to satisfy the Elimination Period. The days for which You receive only the Care Advisory Services Benefit do not count toward the Elimination Period. Benefits paid under the Care Advisory Services Benefit will not reduce the Policy Limit. Waiver of Premium Benefit We will waive the payment of premiums under this Policy if: You are receiving care or services for which benefits are payable under the Long-Term Care Benefit; and You have satisfied the Elimination Period. The waiver period will start the day after the Elimination Period has been satisfied and will end on the date when benefits are no longer payable. In the event You have already satisfied the Elimination Period, the waiver period will start on the next Date of Service and will end on the date when benefits are no longer payable under this Policy. Your premium will not be waived if You: are only receiving benefits under the Stay at Home Benefit, Respite Care Benefit or the Care Advisory Services Benefit; or have exhausted the International Coverage Benefit, unless and until You receive care or services for which benefits are payable under the Long-Term Care Benefit within the fifty (50) United States or the District of Columbia. If Your premium has been paid for a period for which premiums are waived, We will refund the premium for such period. In order to keep this Policy in effect after the waiver of premium period ends, payment of premiums must be resumed. LTC-03 NC 1/08 15 SAMPLE POLICY

Extension of Benefits If Your Policy lapses, while You are continuously confined in a Nursing Home, Hospice Facility or Assisted Living Facility, benefits under the Long-Term Care Benefit will be continued until the earlier of the following dates: the date You are discharged from the Nursing Home; Hospice Facility or Assisted Living Facility, the date Your Policy Limit is exhausted; or the date You die. This Extension of Benefits will be subject to all of the provisions of this Policy. International Coverage Benefit If You require care or services which would otherwise be covered by this Policy while You are outside the fifty (50) United States or the District of Columbia, We will pay the International Coverage Benefit if all the following requirements are met: We receive Proof of Loss which is satisfactory to Us that You have met Your Elimination Period and the requirements found in the sections captioned "Eligibility for the Payment of Benefits" and "Conditions". You provide Us (at Your own expense) with the following documentation as described in the "Conditions" section of the Policy: the required certification from a Licensed Health Care Practitioner: a current Plan of Care and any required updates to that Plan of Care; and properly completed claim forms and proof, satisfactory to Us, that You are receiving covered care and services. All required documentation must be provided to Us in English. We reserve the right to require that You provide us with updated documentation and information at reasonable intervals. However, We will not require updates more frequently than monthly. We will pay actual charges incurred for certain Long-Term Care Services up to the International Coverage Benefit Amount as shown on the Policy Schedule. Long-Term Care Services eligible for payment under the International Coverage Benefit include: confinement in a Nursing Home or Assisted Living Facility; Home Health Care, Adult Day Care and Hospice Care. No benefits under the International Coverage Benefit, are payable for the Stay at Home Benefit, the Double Coverage for Accident Benefit (if included in Your Policy), or for Respite Care or Care Advisory Services. LTC-03 NC 1/08 16 SAMPLE POLICY

The International Coverage Benefit will not be paid in excess of an amount equal to: 365-times the Long-Term Care Benefit Amount if You elected the daily Benefit Amount option; or 12-times the Long-Term Care Benefit if You elected the monthly Benefit Amount option. This Policy will continue in force after the International Coverage Benefit is exhausted so that any remaining benefits may be paid for care and services received in the fifty (50) United States or the District of Columbia. In the event that the International Coverage Benefit is exhausted, premiums will no longer be waived pursuant to the Waiver of Premium provision. In the event that the International Coverage Benefit is exhausted, the benefits remaining for Long-Term Care Services received within the fifty (50) United States or the District of Columbia shall remain in effect. Any benefit paid under this provision will reduce Your Policy Limit. All terms in the Policy will remain in effect. Any benefits paid will be paid in United States currency. Return of Premium upon Death Benefit Important Notice - The Return of Premium Benefit is not applicable to You if You are age 65 or older or You elected FamilyCare. If You die before Your 65 th birthday, We will pay to Your beneficiary a Return of Premium upon Death Benefit if Your Policy is in force on the date of Your death. (That is, Your insurance is not being continued under the provisions of any nonforfeiture benefit.) The Return of Premium upon Death Benefit will be calculated by subtracting the sum of all benefits paid under Your Policy for charges incurred prior to the date of Your death from the sum of all premiums paid for Your Policy (accumulated without interest). In the event the amount of benefits paid exceed the sum of premiums paid for Your Policy, no Return of Premium upon Death Benefit will be payable to Your beneficiary. If We receive a claim for benefits for Long-Term Care Covered Charges after the Return of Premium upon Death Benefit has been paid, benefits for those services will be reduced by the amount of the Return of Premium upon Death Benefit that has been paid. Your beneficiary for the Return of Premium upon Death Benefit is the individual that You designated as beneficiary in Your application for this Policy. You may change the beneficiary for this benefit at any time. However, such request for a change in beneficiary must be in writing and sent to Our LTC Administrative Office. Important Notice Regarding Federal Income Tax Law Please note that the payment of the Return of Premium Benefit may have Federal Income Tax implications for Your estate or beneficiary. You are advised to review this benefit with a qualified tax professional or attorney to determine any such tax impact. LTC-03 NC 1/08 17 SAMPLE POLICY

PART 3 - EXCEPTIONS This part describes what care, treatment or services will be excluded under the Policy and when the benefit will not be paid. Exceptions This Policy does not cover care, treatment or charges: for intentionally self-inflicted injury. required as a result of alcoholism or drug addiction (unless drug addiction was a result of the administration of drugs as part of treatment by a Physician). due to war (declared or undeclared) or any act of war, or service in any of the armed forces or auxiliary units. due to participation in a felony, riot or insurrection. normally not made in the absence of insurance. provided by a member of Your Immediate Family, unless the family member is one of the following professionals -- a duly licensed registered nurse, licensed vocational nurse, licensed practical nurse, physical therapist, occupational therapist, speech therapist, respiratory therapist, licensed social worker, or registered dietitian; and the family member is a regular employee of a Nursing Home, Assisted Living Facility, Adult Day Center or Home Health Care Agency which is providing the services; the organization receives the payment for the services; and the family member receives no compensation other than the normal compensation for employees in his or her job category. provided outside the fifty United States and the District of Columbia except as described in the International Coverage Benefit section of this Policy. Non-Duplication of Benefits This Policy will only pay covered charges in excess of charges covered under any of the following: Medicare (including amounts not reimbursable by Medicare such as a Medicare deductible or coinsurance amounts). any other governmental program (except Medicaid). employer s liability or occupational disease law.. services or supplies for the treatment of an Occupational Injury or Sickness which are paid under the North Carolina Workers Compensation Act only to the extent such services or supplies are the liability of the employee, employer or workers compensation insurance carrier according to a final adjudication under the North Carolina Workers Compensation Act or an order of the North Carolina Industrial Commission approving a settlement agreement under North Carolina Workers Compensation Act. LTC-03 NC 1/08 18 SAMPLE POLICY

PART 4 - CLAIMS This part explains when to file Your claim, the information We need to review, process and pay Your claim, and Your and Our rights and responsibilities. Early notification to Our Claims Department will facilitate a timely review of Your claim. Please let Us know immediately or in advance, whenever possible, when You need care or services covered by this Policy. Please call Us at 1-800-377-7311. Notice of Claim HOW AND WHEN TO FILE A CLAIM To file a claim You must first notify Us that You are currently receiving or plan to receive Long-Term Care Services covered by Your Policy. You can notify Us by: writing to Us at Our LTC Administrative Office or contacting Us at Our website address - www.jhancock.com; or calling Us at Our LTC Administrative Office at 1-800-377-7311. Your notice must include: Your name; Your Policy number; and the type of care You are receiving or plan to receive. If You send Us written notice, Your notice must be mailed to Us postmarked within 45 days after Long-Term Care Services begin, or as soon as reasonably possible. If You notify Us by telephone, You must call Us within 45 days after a covered loss begins or as soon as reasonably possible. We will confirm, in writing, Your notification within 15 days after We receive such notification. Claim Forms and Proof of Loss When We receive Your notice of claim, We will send You claim forms for filing a Proof of Loss. You must file Your Proof of Loss with Our LTC Administrative Office. Proof of Loss means detailed written documentation acceptable to Us which describes and confirms: Your inability to perform two or more of the Activities of Daily Living or Your Cognitive Impairment; Your confinement in a Nursing Home or Assisted Living Facility; or other care (e.g., Home Health Care, Respite Care, Care Advisory Services) You are receiving. This documentation includes: a completed claim form; confirmation of provider licensure as required by the jurisdiction in which it is located; the required certification from a Licensed Health Care Practitioner; itemized bills for charges You incurred for Your care and services; and Your Plan of Care. LTC-03 NC 1/08 19 SAMPLE POLICY